If you look at the Mid Atlantic Board there are a couple recent posts on this topic.

My favorite place for breakfast/brunch in Ocean City is The Bayside Skillet. They have great fried potatoes, omelettes and crepes. The portions are huge and easy to split. I think they are open all day and have a dinner menu at night.

For mexican Tequila Mockingbird is also pretty good. There is usually a wait, but their margarita's are good and their bar isn't too small.